The use of SaaS applications and the volume of cloud workloads are surging. Businesses today use approximately 112 SaaS apps for various business operations. According to The State of BCDR Report 2025, over 50% of workloads and applications now run in public cloud environments, and this is expected to reach 61% within the next two years.

The cloud has become the new endpoint, where employees collaborate, data resides and critical business operations run. Today, cloud platforms serve not only as the backbone of modern business productivity but also as the primary attack vector for cybercriminals.

Traditional security controls, such as firewalls and endpoint detection and response (EDR) tools, protect on-premises assets and devices. However, business-critical SaaS platforms, such as Microsoft 365, Google Workspace and Salesforce, fall completely outside EDR coverage, leaving organizations vulnerable to cyber-risks like account takeovers, data exfiltration and configuration-based attacks that bypass conventional defenses.

Protecting cloud environments requires a new approach to detection and response. That’s where cloud detection and response (CDR) solutions come in. CDR solutions are designed specifically to fill this gap by providing continuous monitoring, real-time threat detection and alerting and rapid response capabilities across SaaS environments.

In this blog, we’ll discuss what CDR is, why it matters and how it protects cloud environments from emerging threats.

What is cloud detection and response?

Cloud detection and response is a security approach that continuously monitors activity across cloud platforms to detect, analyze and respond to threats in real time.

Let’s take a look at how the cybersecurity landscape has evolved through successive generations of detection and response technologies to better understand the role of CDR.

From antivirus to CDR: The evolution of detection and response

As cyberthreats advanced, security tools adapted in response, resulting in new approaches to protecting shifting attack surfaces:

Antivirus (AV): Antivirus solutions scan the programs and files on endpoint devices using methods such as signature-based detection, heuristic analysis and behavioral monitoring to identify malicious software. However, while antiviruses are effective against known threats, traditional antivirus tools offer little to no visibility into novel or sophisticated attacks in cloud environments.

Endpoint detection and response: As threats become more complex, EDR solutions have emerged to provide continuous monitoring, behavior-based analytics and real-time, automated responses to threats on endpoints such as laptops, desktops and servers that antivirus software fails to detect.

Extended detection and response (XDR): XDR unifies data from multiple security layers, including endpoints, networks and cloud workloads, into a single platform. By breaking down silos, it delivers a more integrated and coordinated approach to detecting and responding to modern threats.

Cloud detection and response: The latest advancement in cybersecurity defense is cloud detection and response. CDR is a proactive security solution designed for threat detection, investigation and response within cloud and SaaS environments — domains that are typically beyond the monitoring capabilities of EDR and XDR platforms.

Why traditional security tools fall short

Traditional security tools such as AV, EDR and firewalls were designed to monitor endpoints and create a network perimeter. They are effective at protecting physical devices and on-premises infrastructure, strengthening an organization’s security posture by detecting malware, blocking unauthorized access and monitoring endpoint behavior. However, as organizations increasingly shift their operations to cloud-based applications, such as Microsoft 365, Google Workspace, Salesforce and other SaaS platforms, these tools fall short of protecting the environments where most business activities now occur.

Cloud services operate outside the reach of traditional endpoint tools. EDR agents cannot monitor activity within web-based SaaS applications, and firewalls miss attacks that occur through legitimate cloud APIs. Attackers now exploit cloud identities and permissions, rather than targeting devices.

In cloud-focused attacks, cybercriminals:

Abuse OAuth permissions by tricking users into granting malicious apps access to corporate data.

Exploit shared links, as overexposed or publicly shared files can become easy entry points for data theft.

Bombard users with repeated authentication requests until they accidentally approve one.

Exploit compromised credentials — obtained through data breaches or purchased on dark web forums — to infiltrate cloud accounts undetected.

Traditional endpoint tools often fail to detect these threats, creating a critical visibility and response gap that leaves organizations vulnerable, even when they have endpoint and network security solutions in place.

Businesses need a reliable CDR platform to monitor, detect and respond to evolving threats across SaaS and cloud environments where traditional endpoint security solutions have limited reach.

How cloud detection and response works

CDR combines monitoring, analytics and automation to deliver continuous protection across cloud environments. Unlike traditional security tools that focus on endpoints or networks, CDR solutions are built to operate natively in the cloud, connecting through APIs and activity logs.

The key components of a modern CDR platform include:

Continuous cloud monitoring

CDR continuously monitors SaaS apps for suspicious activity by tracking login locations, file-sharing behavior, privilege changes and third-party app integrations. This provides real-time visibility into how users and applications interact with sensitive data across services such as Microsoft 365, Google Workspace and others.

Behavioral analytics

Modern CDR platforms use machine learning-powered behavioral analytics to identify anomalies that indicate potential compromise. For example, a user logging in from unapproved locations, sharing business-critical files with people outside the organization or granting excessive permissions, might suggest malicious intent or account takeover.

Automated response

CDR systems can take automated response actions to mitigate or eliminate threats as soon as they are detected. This might include temporarily disabling the compromised account or blocking suspicious login attempts. Automation helps minimize response times — reducing dwell time and limiting the damage caused by unauthorized access or data exfiltration.

Integration with other security tools

CDR integrates with other security tools, such as Security Information and Event Management (SIEM), XDR and identity and access management (IAM) platforms to deliver a unified and coordinated defense. This integration with broader security ecosystems provides a comprehensive view of the threat landscape, enabling real-time threat detection, faster investigation and automated response.

Benefits of implementing CDR

CDR solutions provide real-time visibility and automated threat remediation across SaaS environments. Here are some of the key benefits:

Faster detection of account takeovers and insider threats

Advanced CDR platforms monitor user behavior and cloud activities to spot anomalies, such as unusual logins, privilege changes and suspicious data transfers. This helps security teams quickly detect and respond to account takeovers, insider threats and other credential attacks that traditional tools may miss.

Prevention of data leaks via malicious OAuth apps or misconfigurations

By monitoring API connections, file sharing and app permissions, CDR prevents data leaks from malicious OAuth apps, misconfigurations or excessive sharing. It protects sensitive business data in cloud apps, such as Microsoft 365, Google Workspace or Salesforce, from exposure or misuse.

Reduced manual workload through automated remediation

Cutting-edge CDR platforms, such as SaaS Alerts, automate time-consuming response actions. They lock accounts during breaches, terminate risky file sharing and alert IT technicians. This not only reduces the manual workload for MSPs but also allows them to act quickly before threat actors can inflict additional damage. Automated remediation through CDR implementation allows MSPs to focus on higher-value security tasks instead of repetitive incident handling.

Enhanced compliance and audit readiness

With detailed activity logs, reporting and continuous monitoring, CDR helps MSPs enhance auditability and simplify regulatory compliance for their clients. It enables providers to demonstrate adherence to key industry standards, including HIPAA, GDPR and SOC 2. CDR delivers evidence of proactive threat detection and response across all managed cloud environments.

Cloud detection and response for MSPs

With SaaS applications now serving as core platforms for business-critical operations, implementing a robust CDR solution is no longer optional for MSPs and their clients.

Visibility into client SaaS environments

For MSPs managing dozens or even hundreds of client environments, visibility is crucial. Modern businesses rely heavily on SaaS apps to create, store and share sensitive data. However, these applications often fall outside the scope of traditional endpoint and network monitoring tools. Without direct visibility into these environments, MSPs cannot detect threats, such as account compromises, misconfigurations or unauthorized data sharing.

A reliable cloud detection and response solution provides a centralized view of SaaS threats across all tenants, without the complexity of deploying endpoint agents or juggling multiple tools. It provides MSPs with real-time insights into client cloud activity, including suspicious logins, risky file sharing and third-party app integrations. This enables MSPs to proactively identify threats and respond quickly before they escalate.

Ease of deployment and automation at scale

CDR platforms connect to client SaaS platforms via secure APIs, helping MSPs quickly onboard tenants and scale as their client base grows. For instance, the SaaS Alerts App Wizard allows MSPs to integrate with any SaaS application that has a viable API, pulling mission-critical data into SaaS Alerts. This supports quick detection and response to security threats across almost all of their clients’ SaaS applications.

Once deployed, automated detection and response workflows handle necessary security tasks, such as temporarily disabling affected accounts or blocking suspicious login attempts. This automation reduces manual burden, helping MSPs better protect clients with minimal overhead.

How Kaseya 365 User simplifies cloud detection and response

Kaseya 365 User includes cloud detection and response across Microsoft 365, Google Workspace, Salesforce and other critical SaaS applications, helping MSPs simplify their SaaS security operations.

The CDR platform constantly monitors and protects your clients’ SaaS applications, detecting unauthorized access and shutting it down without requiring any manual intervention. It provides real-time alerting and automated remediation steps, with actions taken within seconds of malicious activity. This significantly minimizes the risk of data egress or malicious activity within your clients’ most vulnerable environments.

Discover how Kaseya 365 User helps MSPs strengthen their clients’ cloud security while boosting their bottom line. Learn more.

Source: Kaseya